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Judge Denies Summary Judgment in Lawsuit Over Pay-For-Delay Deal

Nov. 8, 2017

A federal judge ruled against a motion by three drugmakers to shut down antitrust litigation involving the Lidoderm pain patch.

In their motion to Judge William H. Orrick of the Northern District of California for summary judgment, Teikoku, Watson and Endo called for an end to the multidistrict lawsuit. The suit, consolidated in 2014, alleges Teikoku and Endo made a $266 million pay-for-delay deal with Watson, now an Allergan subsidiary, to keep generic versions of Lidoderm pain patches off the market.

The plaintiffs, a group of Lidoderm buyers, argued that Watson could have prevailed over the other two companies in a patent infringement lawsuit. The drugmakers challenged the use of hypotheticals, but the plaintiffs cited legal precedent for such hypothetical claims.

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